Allowed

Bank of India v. Balvir Singh and Another

DRT20 Jan 2025OA/1230/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of India's application for recovery of Rs. 24.63 lakhs against two defaulting borrowers. The court exercised its discretion to grant uniform simple interest at 8% per annum instead of higher claimed rates and ordered execution against mortgaged properties.

What did the court decide?

Recovery of Rs.24,63,204.55 plus costs and uniform simple interest @8% p.a. from filing date until realization; issuance of Recovery Certificate.

Bank of India versus Balvir Singh and Another — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1230/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.10.2023

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DATE OF DECISION: 20.01.2025

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Bank of India, a body corporate and a nationalized Bank under the Provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Bank of India, Star House, C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai400051 and amongst others a branch at Nihal Singh Wala, District Moga through Sh. Prasad Dwarka, Constituted Attorney of the Applicant.

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……..Applicant

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Versus

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Sh. Balvir Singh S/o Sh. Joginder Singh, R/o House No. 93, Village Nangal, Tehsil Nihal Singh Wala and Distict Moga, Punjab.

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Sh. Nachhatar Singh S/o Sh. Ajmer Singh, R/o Village Nangal, Tehsil Nihal Singh Wala and Distict Moga, Punjab

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………Defendants

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Advocates:

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Argued by Sh. Pankaj Beri, Advocate for the Applicant (though VC) Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.24,63,204.55p (Rupees Twenty Four Lacs Sixty Three Thousand Two Hundred Four and Paisa Fifty Five Only). The Original Application has been filed through Sh. Prasad Dwarka, Constituted Attorney o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 05.12.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs and Agriculture OD Limit of Rs.5.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.10.00 Lacs and OD Limit of Rs.5.00 Lacs vide Loan Applications of Crop Loan dated 30.10.2014, which are Annexures A2 and A3 to this OA the terms and conditions were duly accepted by the defendant. 4. Defendant no. 1 had mortgaged his immovable property i.e. total land measuring 47K-11M situated at Village Nangal, Tehsil Nihal Singh Wala, District Moga, Punjab vide Declaration u/s 4 (1) dated 11.11.2014 and along with its English Translation, which is Annexure A10 to this OA. Documents executed:- DP Note (Crop Loan), Hypothecation cum Loan Agreement, DP Note (Mortgage Loan), Letter of Declaration, Undertaking and Authority, Agreement, Deed of Guarantee all dated 18.11.2014, which are Annexures A4 to A9 to this OA; Acknowledgement of Debt Securities(Crop Loan), Acknowledgement of Debt Securities(Mortgage Loan) dated 31.05.2017, 25.06.2019 and 24.06.2022, which are Annexures A11 to A16 to this OA; Legal Notice dated 28.08.2023 with postal receipts, which is Annexure A17 to this OA and Statement of Accounts (Crop Loan) & (Mortgage Loan) , which are Annexures A18 & A19 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.24,63,204.55p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 24.06.2024.

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In support of the OA, affidavit of Sh. Prasad Dwarka, Constituted Attorney, Bank of India h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel (through Video

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Conferencing) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,63,204.55p (Rupees Twenty Four Lacs Sixty Three Thousand Two Hundred Four and Paisa Fifty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed [email protected]%p.a. in Crop Loan (KCC) and @13.65%p.a.in Agricultural OD with half yearly rests in both accounts from 01.09.2023 the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,63,204.55p (Rupees Twenty Four Lacs Sixty Three Thousand Two Hundred Four and Paisa Fifty Five Only) with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.03.2025.

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Copy of this order be given Dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal . Dated: 20.01.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Balvir Singh and Another

Case brief

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Bank of India v. Balvir Singh and Another

Case brief

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